The hottest steel industry lost 19.7 billion. This

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The whole iron and steel industry lost 1.97 billion yuan. This year, it is difficult for steel mills to work in mines.

everyone wants a good year. Electro hydraulic servo fatigue testing machine: but the "gloom" hanging over the iron and steel industry has not dissipated. On the first weekend after the new year's Day holiday, the "bosses" of Dachong steel plant from all over the country in the Guoyi Hotel did not have festive celebrations on their faces. On the contrary, industrial losses and soaring iron ore prices became lingering pain

"the steel industry has encountered the greatest difficulties since the new century, and it is expected that the main steel industry will still end up at a loss throughout the year." At the annual "2013 Council expansion meeting of CISA", Wang Qinghai, President of China Iron and Steel Association and chairman of Shougang Group, said. He pointed out that although the operating conditions eased in October and November 2012, one third of the enterprises were still at a loss by the end of November

according to the internal data obtained from the meeting, the large and medium-sized steel enterprises included in the statistical scope of the Steel Association achieved a cumulative sales revenue of 3244 billion yuan from January to November 2012, a year-on-year decrease of 5.37%; Profits and taxes reached 66 billion yuan, a decrease of 5.773 billion yuan, and the break even profit was 1.97 billion yuan

Wang Qinghai admitted that insufficient market demand and excessive production capacity led to a sharp drop in steel prices, making the steel industry in extreme difficulties. He told that from January to November 2012, the national industrial added value increased by 6.8% year-on-year, and the growth rate fell by 10.5 percentage points. The growth rate of national real estate development investment fell by 13.2 percentage points year-on-year, especially the new construction area of houses fell by 7.2% year-on-year, while it increased by 20.5% in the same period of 2011. This is enough to explain that the demand of downstream industries is insufficient, and the steel production capacity is too large. The contradiction between supply and demand in the steel market is very prominent, and steel sales are extremely difficult. "As the steel price continued to fall, squeezing the profit space of steel distributors, the capital chain broke, further exacerbated the market panic, and the losses of the whole industry followed." He said

according to the latest internal data of CISA, the sales revenue of iron and steel enterprises included in the statistics of CISA from January to November 2012 decreased by 5.37% year-on-year, bank borrowings increased by 6.58% year-on-year, and financial expenses increased by 24.38% year-on-year. At the same time, the asset liability ratio of enterprises continued to rise, reaching 68.67% by the end of November, with a year-on-year increase of nearly 1.64 percentage points

"it is worrying that some steel mills even have vicious competition. A steel mill in North China competes to hold down prices in steel sales, and some enterprises use tax evasion methods such as less or no Invoicing to sell steel at low prices, undermining the order of fair competition." A person in charge of the steel plant attending the meeting said to

the high price of imported iron ore has also devoured the meager profits of steel enterprises. Wang Qinghai said frankly that the steel price was low for a long time in 2012. Although the price of imported iron ore fell, it was significantly lower than the steel price. From January to November, the average settlement price of steel enterprises per ton fell by 729 yuan year-on-year, and the purchase cost of imported iron ore of enterprises fell by only 236 yuan per ton in the same period. Moreover, as long as the steel price rises slightly, the imported iron ore will follow suit, and the increase is much higher than the steel price

"taking October 2012 as an example, the steel price index of CISA increased by only 2.9% month on month, but in the same period, when the order price of imported iron ore was the lowest (the third week of September), it has increased by 15.9%, and the price increase of imported iron ore is much higher than that of steel." Wang Qinghai said that it is this "easy to rise but difficult to fall" ore price law that devours the meager profits of iron and steel enterprises, making the purchase of imported iron ore by iron and steel enterprises a high-risk game. Many enterprises fall into losses because of the lack of "punctuality" in the test method AAMA 1503 (9) 8 for the heat transfer coefficient and anti condensation performance of doors, windows and curtain walls

it is understood that since December 2012, the iron ore market has become popular. Not only the spot transactions at the port have surged, but also the goods arriving at the port have begun to increase. The depressed price rebounded rapidly, and the ore price quotation rose from $94/ton using polystyrene foam as thermal insulation material in early September to $155/ton, an increase of 65%. "Such a high ore cost must be a loss for the steel plant. We are still working for the mine." The boss of a steel plant in East China spat on DA on the sidelines of the meeting

what makes the whole steel industry anxious is the chronic disease of "overcapacity". According to the latest statistics of China Iron and Steel Association, from January to November 2012, the total investment in fixed assets of the whole iron and steel industry was 594.6 billion yuan, an increase of 6.5% year-on-year, of which the investment in black smelting and rolling industry was 455.6 billion yuan, the total investment hit a record high, and the industry is expected to add more than 50 million tons of steel production capacity

"in 2013, the market situation of China's iron and steel industry was difficult to fundamentally improve, and the realization of the profits of the whole industry was still facing severe challenges." Wang Qinghai said to him that the international economic situation in 2013 is still complex, and the rapid growth trend of the world economy will continue. First, the growth of downstream industries is slow, and steel consumption is difficult to grow significantly. Second, the expansion of steel production capacity has not been effectively curbed, and the situation of supply exceeding demand will not change. On the other hand, the cost of raw materials is still high, which will bring risks to the profits of the steel industry

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